Payments by credit or debit cards represent a large portion of consumer spending. Historically, credit or debit cards were encoded with a magnetic stripe, which allows a transaction responsive to a transaction device arranged to read information encoded on the magnetic stripe, in a secured manner. The device reading the magnetic stripe is typically in communication with the credit card issuer via a transaction network, the credit card issuer ultimately approving the transaction. Credit or debit cards are unfortunately susceptible to theft which may be unrealized by the user for a significant period of time.
Advances in technology have led to the development of contactless smart cards, such as those defined under ISO/IEC 7810 and ISO/IEC 14443, also known as Near Field Communication (NFC). Similar technology is available meeting other standards or protocols generally under the term radio frequency identification (RFID), with the range of RFID typically restricted to be of the same order as that of NFC. The term contactless element (CE) as used throughout this document refers to any short range communication device operating under any of NFC, RFID or other short range communication standard with range on the same order as that of NFC, and typically require that the CE be juxtaposed with a reader. The use of optically readable codes are specifically included herein with the definition of a CE. Such CE smart cards may be used for transactions, however since they may be read by any reader within about 4 cm, they do not provide for increased security. As such, CE smart cards are typically only used for low value transactions, wherein a small value is pre-loaded on the CE smart card, and the small value is depreciated with each transaction until a limit is reached.
Mobile devices (MDs) are increasingly being used for financial transactions due to their ubiquity, available screen and input devices. An MD as used herein includes any electronic MD used for personal functionalities such as multimedia playing, data communication over a network or voice communication. One embodiment of an MD is a mobile station, also known as a mobile communication device, mobile phone, mobile telephone, hand phone, wireless phone, cell phone, cellular phone, cellular telephone, mobile handset or cell telephone.
With the development of IEEE 802.11, and the broad establishment of the resultant wireless networks, various MDs have been developed which communicate over available wireless networks in addition to cellular telephone capabilities. Furthermore, various MDs have been developed with the ability to access the Internet both over a wireless network and/or over a cellular network.
The ubiquitous MD, having an associated means for user identification and charging expenses, presents an opportunity to utilize the MD as an electronic wallet. There are several known methods for providing a service or a product, and in particular, payment for products or services other than phone usage or airtime, by using a mobile station.
CEs in cooperation with an MD have been developed into two main groups: devices which are in communication with a controller of the MD, such as to the MD's CPU; and devices which are not in communication with the MD's CPU. In the case of CEs in communication with the MD's CPU one can find various devices, such as NFC devices on SIM cards, also known as “SIM Contactless Element” (SCE), external cards such as SD cards with NFC devices, SIM add-on Contactless Elements (SCCE), and NFC devices found within the MD's hardware. The above group of devices denoted herein as “embedded CE” (ECE) devices can be used in the same manner as CE devices which are not connected to the MD's CPU for applications where the CE reader communicates with the CE device directly and the communication doesn't rely on any action of the MD's CPU. It is to be noted that in the event that the CE comprises an optically readable code displayed on a display of the MD, the MD is inherently an ECE device.
The group of CEs which are not connected to an MD CPU may include NFC or RFID tags, stickers, key fobs, optically readable codes which may be affixed to the MD, and other form factors. Such a CE, when secured in relation to the MD may thus be utilized to provide an identification number read by a reader within proximity of the CE.
Concerns for security have evolved so that a CE enabled MD, i.e. an MD wherein the CE is in communication with a controller of the MD, is now preferably provided with a secure element (SE), which is defined herein as a tamper proof element arranged to embed applications with the required level of security and features. In further detail, an SE is an element wherein access to data or functions stored in the SE is controlled by security levels such that only authorized parties may access the data or functions. Thus, contents of the SE can not be copied, written to, or read from, without a predetermined security key, access to which is controlled. The term security key is particularly addressed in this application to keys as known in cryptography, and is not meant to be a physical, or mechanical key. Typically security is provided in cooperation with one or more keys which are controlled by the SE issuer. The SE may be supplied as part of the CE, as part of the MD, or as an additional element which is removable form the MD. There is no limitation to the number of SEs on an MD, and in particular a plurality of SEs may coexist on a single MD. One of the SE's may be implemented on a single subscriber identity module (SIM) without limitation.
Advantageously, the SE is arranged to provide secured storage, and as a result personal information can be stored therein. Disadvantageously, the SE is typically limited in size, i.e. in memory space, and thus is incapable of storing a complete range of personal information.
As transaction systems have become more sophisticated and in more widespread use, the incidence of fraudulent transactions have also increased. User devices such as portable computers have been successfully hacked into such that access to secure web sites, such as banking and shopping sites, have become problematic, since the password and/or any other entered information may be fraudulently obtained by a surreptitious hacker. Similarly, access to secure web sites from a shared computer, such as an Internet café computer, may compromise both the user name and password of the unsuspecting user.
As an MD becomes increasingly utilized for various transactions, and as security features are properly disposed thereon, it would be convenient to add further capabilities thereto, which may involve information that requires occasional updating. The current status of SE production, wherein control is maintained by the SE issuer, makes this a challenging proposition.
What is needed, and is not provided by the prior art, is a system and method for providing secure transactions in cooperation with an MD, thus providing increased security to a user.